Naval Sea Systems Command (NAVSEA) awarded Science Applications International Corp. (SAIC) of Reston, Virginia a $112,302,900 modification to contract N00024-22-C-6419 on May 21, 2026, covering production, spare parts, production support material, engineering support, and hardware repair of components for the MK 48 Heavyweight Torpedo All Up Round. The contract runs through April 2029, with work split between Bedford, Indiana (80 percent) and Middletown, Rhode Island (20 percent). Fiscal year 2025 weapons procurement (Navy) funds account for 86 percent of the obligation, with FY2026 and FY2024 weapons procurement funds covering most of the remainder, and a small share drawn from foreign partner funds supporting a Royal Australian Navy component through the Foreign Military Sales program.
The MK 48 and the MOD 7 Configuration
The MK 48 is the U.S. Navy's primary heavyweight torpedo and has been in continuous service since the early 1970s. Launched from submarine torpedo tubes, it is designed to engage both surface ships and deeply submerged submarines. Unlike lightweight torpedoes carried by surface ships and helicopters, the MK 48 is a large, wire-guided weapon that can operate at significant depth and range. Its guidance system allows the operator to steer it during the approach phase before switching to active or passive homing for terminal engagement, giving submarines a level of tactical flexibility not available with fire-and-forget designs.
Over its service life, the MK 48 has gone through a succession of modifications — each designated by a "MOD" number — that have incrementally upgraded the weapon's propulsion, guidance electronics, and software. The current contract is in support of the MK 48 MOD 7 Heavyweight Torpedo program, which represents the current production-standard configuration of the weapon in service with the U.S. Navy and allied navies. The scope of SAIC's work covers all the components needed to keep MOD 7 rounds in production and serviceable across the fleet.
SAIC's Role and Contract Structure
SAIC is performing as a system integrator and component producer under this modification rather than as the torpedo's original equipment manufacturer. The contract covers the full production and sustainment lifecycle of torpedo components: fabricating new parts for delivered rounds, procuring spare components to support fleet maintenance, producing support material needed for storage and handling, providing engineering support to resolve technical issues that arise in fleet use, and repairing hardware returned from the fleet. This kind of all-in-one scope — often called an "All Up Round" contract — gives the Navy a single point of accountability for keeping operational torpedoes in service rather than managing separate agreements with multiple vendors for each function.
The contract structure itself is a blend of three types. Firm-fixed-price (FFP) covers work where the scope is well-defined and costs are predictable, such as production runs of established components. Cost-plus-fixed-fee (CPFF) applies to engineering support activities where the level of effort is harder to predict in advance. Cost-only line items cover materials or government-furnished equipment reimbursed at actual cost without a profit margin. This tiered structure is standard practice for NAVSEA torpedo contracts, where some tasks are routine production and others involve unpredictable engineering analysis.
The geographic split in the contract is notable. Eighty percent of the work is in Bedford, Indiana, and 20 percent in Middletown, Rhode Island. Bedford is home to manufacturing facilities that have supported naval weapons programs for decades. Middletown, Rhode Island, is in the same general region as the Naval Undersea Warfare Center (NUWC) Division Newport, the Navy's primary research, development, and sustainment activity for torpedoes and underwater weapons systems. The proximity to NUWC Newport is relevant for the engineering support elements of this contract, where technical coordination between the contractor and government engineers is ongoing.
Funding for this modification is spread across three fiscal years. The majority — $94,774,762 — comes from FY2025 Navy weapons procurement. An additional $12,786,942 comes from FY2026 weapons procurement, and $1,868,254 from FY2024 funds. Foreign partner funds of $917,625 support the Royal Australian Navy's share of the work through the Foreign Military Sales mechanism, reflecting Australia's longstanding use of the MK 48 in its Collins-class submarines.
What It Means for Contractors
For small and mid-size businesses in the undersea warfare industrial base, this contract modification signals that MK 48 production and sustainment spending remains a stable, multi-year demand stream. The Bedford, Indiana, performance location in particular is worth noting for Midwest manufacturers with precision machining, materials processing, or assembly capabilities. NAVSEA torpedo programs have historically relied on a layered supply chain, with the prime contractor sourcing sub-components — structural parts, seeker elements, guidance electronics, propulsion components, and specialized materials — from a network of smaller suppliers. Companies already in the NAVSEA supplier ecosystem for other weapons programs should evaluate whether their production capabilities overlap with MK 48 component requirements.
The Foreign Military Sales element is also significant for companies thinking beyond the domestic market. Australia's investment in MK 48 modernization through the AUKUS partnership framework means that production volumes may grow if allied procurement expands. Suppliers who achieve qualification on MOD 7 components have a potential path into FMS-funded production at higher volumes as Australia increases its submarine force capability. NAVSEA's Supervisor of Shipbuilding offices and NUWC Newport are the primary government contacts for companies seeking to enter this supply chain, and SAM.gov contract notices for future MK 48 solicitations will typically appear under NAICS code 332993 (Ammunition, except Small Arms, Manufacturing).
The CPFF engineering support component is an opportunity for engineering services firms with undersea weapons backgrounds. As the MOD 7 matures and the Navy works toward future torpedo variants, engineering analysis, test support, and technical documentation work will continue to flow under sustainment vehicles like this one. Small businesses with relevant 8(a), HUBZone, or SDVOSB designations should monitor NAVSEA's small business office for teaming opportunities with SAIC on follow-on work before this contract closes in April 2029.
